MRK Short Put — Nov 20, 2026

MRK (Merck & Company, Inc. Common Stock (new)) presents a short put opportunity with very elevated implied volatility. IV Rank 85. IV 3809.0% trades 1928.0pp above 30-day HV (1881.0%). This setup favors net premium sellers.

Sell the $130 put for $2.02 credit. Naked single-leg exposure; collect premium from time decay if MRK stays above the strike. Underlying ~$148.78, 50 DTE. Max profit $203 per contract, max loss $12798, 1.6% return on risk, 81% POP. Breakeven at $127.97.

Management: take profit at ~50% of max profit ($101). Cut at 2x credit ($405 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.

Underlying: MRK @ ~$148.78 Expiration: Nov 20, 2026 (50 DTE) Net credit (entry): ~$202.50 per spread Legs:

• Sell MRK Nov 20, 2026 $130 Put (delta -0.19, mid $2.02)

Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~4.4% of mid) before sending.

Take profit at 50% of max profit ($101). Cut loss if position reaches 2x credit received ($405 loss). Roll if tested with > 14 DTE remaining.